Shares of the company fell more than 15 percent in extendedtrading. They closed at $31.85 on Tuesday on the New York StockExchange.

Tempur-Pedic, which pioneered the specialty bed market withfoam-based technology developed by NASA, has been struggling towin back customers from rivals such as Select Comfort and privately held Simmons Bedding Co and Serta Inc.

The company acquired market leader Sealy Corp lastmonth to fend off smaller rivals, who have been innovating theirproducts and resorting to aggressive promotions to lurecustomers.

Tempur now expects a full-year profit of about $2.55 pershare on revenue of about $1.40 billion, down from its previousforecast of $2.80 per share on revenue of $1.43 billion.

Analysts on average expect a profit of $2.78 per share onrevenue of $1.43 billion, according to Thomson Reuters I/B/E/S.

Tempur reported a third-quarter net loss of $2.0 million, or3 cents per share, compared with a profit of $61.95 million, or90 cents per share, a year earlier.

On an adjusted basis, the company posted a profit of 70cents per share, beating analysts estimates by 1 cent.